Amid rising trade tensions between the US and China, Beijing appears to be warming up to deeper economic ties with India. Chinese ambassador to India, Xu Feihong, has said that China welcomes more premium Indian exports and is ready to support Indian businesses in tapping into its vast consumer market.
Speaking to The Times of India in an exclusive interview, Feihong said, “The essence of China-India economic and trade relations is mutual benefit and win-win cooperation. China has never deliberately pursued a trade surplus. Trade surpluses reflect market-driven efficiency and evolve with changing economic conditions.”
The envoy highlighted that China offers significant investment potential, citing President Xi Jinping’s recent address to global business leaders. “China offers great potential for investment and consumption with the world’s second-largest consumer market and largest middle-income group. Valuing China’s super-sized market will unlock greater commercial opportunities for Indian companies,” he said.
In FY2024, Indian exports such as chili peppers, iron ore, and cotton yarn saw notable growth in the Chinese market—rising by over 17%, 160%, and 240% respectively. “We welcome more premium Indian goods export to China and stand ready to help Indian businesses tap into China’s market demand, further exploring the vast potential of our economic and trade collaboration,” Feihong said.
However, he also urged New Delhi to address China’s concerns regarding market access. “We hope that India will take China’s concerns in the economic and trade field seriously, provide a fair, transparent, and non-discriminatory business environment for Chinese enterprises, elevate China-India bilateral economic and trade cooperation to new heights, and deliver tangible benefits to the people of both countries,” he added.
The outreach comes despite persistent friction over the $99.2 billion trade deficit India faces with China, and lingering political tensions since the 2020 border standoff. Still, as the US doubles down on tariffs, Beijing’s renewed focus on India signals a potential shift in its economic strategy—aiming to diversify trade partnerships and reduce reliance on increasingly adversarial Western markets.
